Under the supplementary welfare allowance scheme a weekly supplement may be paid in respect of rent or mort gage interest to people in receipt of social welfare or health board payments.
Entitlement to a supplement is determined by the health boards and supplements are normally calculated to ensure that the person, after payment of rent or mortgage interest, has an income equal to the weekly rate of supplementary welfare allowance appropriate to the family circumstances, less £6. This £6 represents the minimum contribution which a person is required to pay from his or her own resources towards accommodation costs.
In addition to the minimum contribution, all applicants, including pensioners, are required to contribute any assessable means in excess of the appropriate basic supplementary welfare allowance rate towards their rent.
The current supplementary welfare allowance rate for a single person is £76 per week. Any increase in income over and above that rate will result in a decrease of that amount in the rent supplement rate payable.
For example, in the budget 2000 rate increases which came into effect from the beginning of May 2000 the old age non-contributory pension rose by £7 from £78.50 to £85.50. The social welfare allowance rate rose by £4 from £72 to £76. A single person on a non-contributory pension is now in receipt of £9.50 per week above the supplementary welfare allowance rate and would therefore be liable to pay that amount plus the minimum contribution of £6 towards their rent. This means that a single person in receipt of a rent supplement will be left with £70 per week after payment of rent regardless of their primary payment.
This manner of calculation of rent supplement will be examined as part of the review of the supplementary welfare allowance scheme which is currently being undertaken as part of my Department's series of formal programme evaluations. A working group comprising officials from my Department and other relevant agencies has been established to carry out the review and a report is expected by the end of next year.
Any proposals for changes in this area would have to be considered in a budgetary context.